This was my presentation on where Millennium & Copthorne Hotels' online/ecommerce revenue is coming from. This was at the first ever Web Wednesday Singapore on March 20, 2008.
2. Show Me The eMoney!
Joe Nguyen, Director - Global eCommerce
BLOG: http://ecommerceforhotels.blogspot.com
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3. Why Is The Online Marketplace
Important For Hotels?
In the US, 22%, 25%, 28% of all hotel bookings will be
made online in the years 2005, 2006 and 2007. Another
1/4 of hotel bookings will be influenced by the Internet,
but done offline (call Centre, walk-ins, group bookings,
etc). This figure includes Online Travel Agencies (OTA)
as well as direct-to-brand business.
- Source: PhoCusWright US Online Travel Overview Dec 2006.
By the end of 2010, over 45% of all hotel bookings will
be completed online - Source: Merrill Lynch
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4. BUT - Where is it coming from?
Meta-
Corporate search
Website Blogs Sites
OTAs
Search
Hotel Engines Social
Website
Networks
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5. What Is The Online Consumer’s
Buying Cycle?
SHOP
PURCHASE
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6. How does Web 2.0 affect the online
consumers’ buying cycle ?
Firstly, WEB 1.0 - what did IT mean?….. TRANSPARENCY
Consumers are going direct to suppliers, and businesses are going direct to each
other
Traditional intermediaries (like travel agents) got sidelined by airlines and hotels.
Information is at the hand of the consumers and end users giving rise to ebay,
amazon, and expedia
Consumers have more information and more choices; they can SHOP much
easier
WEB 2.0 means INCREASED TRANSPARENCY
Not only will end-users see a company’s product, but they will also have a better
idea of how it performs BEFORE they purchase
They can compare and contrast a hotel’s rates offered across online channels
(online direct vs expedia vs cheaphotels.com vs telephone booking)
They will know which rooms has a nice view and which room is “haunted”
Consumers can RESEARCH much easier and better
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7. What Is The Online Consumer’s
Buying Cycle NOW?
With the web, research is
now easy, quick, and
immensely insightful
RESEARCH
Previously, this research
was offline or at best
SHOP going to the hotels’
websites or OTAs sites.
Web 2.0/Travel 2.0
PURCHASE provides a lot more
information than before
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8. Research Then SHOP
How do consumers shop
once they have done their
Research?
RESEARCH
What tools do they use?
Where do they go?
SHOP
PURCHASE
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9. How Do Consumers SHOP?
Direct to Websites
Direct Internet
Booking Engine
Up to 90% Via
Corp Site
Search Engines
Inventory
CRS/PMS
Hotel Site
CRS/GDS/
Extranets
OTAs
Users
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10. Search Engine Results Page (SERP)
Google reported revenues of $11.77 billion for
the first 3 quarters of 2007, representing a
PPC
59% increase the first 3 quarters of 2006
revenues of $7.40 billion.
Google-owned sites generated revenues of $7.50 billion, or 64% of
total revenues,
PPC
Google's network generated revenues, through AdSense programs, of
$4.15 billion, or 35% of total revenues
Revenues from outside of the United States totaled $5.83 billion,
representing 47% of total revenues of the first 3 quarters of 2007
SEO
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12. Where Is The eMoney?
Direct to Websites
Direct Internet
Booking Engine
Up to 90% Via
Corp Site
Search Engines
Inventory
CRS/PMS
Hotel Site
CRS/GDS/
Rateview/tiger
OTAs
Users Search Engine Marketing
= eMoney
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14. Evolution of Online Travel Share
- HRN launches
- TripAdvisor Founded Hotels.com - IAC buys
- Orbitz Founded - Travelocity goes TripAdvisor
- Travelocity merged back to Sabre - Cendant buys
with Preview Travel Orbitz - Travelport formed;
includes Orbitz &
- Expedia spins - USA Networks >> Octopustravel
- USA Networks -Travelocity buys
off from MS InteractiveCorp (IAC)
buys Expedia LastMinute
- Priceline IPO - IAC buys Hotels.com
- Priceline buys
- Priceline buys
bookings.com
Travelweb
(Merrill Lynch, HeBS, TravelCLICK)
“In 2006 the major hotel brands enjoyed an above the average direct vs.
indirect online ratio of 81.4% vs. 18.6%.” - HeBS
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15. The Search Engine Marketplace
How many searches are done worldwide and what is the share?
Unique
Searches Search Result Search Visits Share of Result Pages
Items 1 to 98 Searchers
(MM) Pages (MM) Per Searcher Searches Per Search
(000)
Total Internet 66,221 97,728 22.3 788,594 100.0 1.5
All qSearch Properties ... ... ... N/A ... ...
1 Total Internet 66,221 97,728 22.3 788,594 100.0 1.5
2 [P] Google Sites 41,345 58,898 18.5 633,521 62.4 1.4
3 [P] Yahoo! Sites 8,505 12,981 9.4 302,952 12.8 1.5
4 [P] Baidu.com Inc. 3,428 5,391 11.9 67,791 5.2 1.6
5 [P] Microsoft Sites 1,940 2,971 4.7 184,451 2.9 1.5
6 [P] NHN Corporation 1,572 1,970 18.6 21,431 2.4 1.3
7 [P] eBay 1,428 1,852 4.6 108,770 2.2 1.3
8 [P] Time Warner Network 1,062 1,427 4.7 98,494 1.6 1.3
9 [P] Ask Network 728 1,004 3.6 93,853 1.1 1.4
10 [P] Yandex 566 819 13.2 12,503 0.9 1.4
11 [P] Alibaba.com Corporation 531 951 5.8 22,806 0.8 1.8
12 [P] Amazon Sites 493 793 2.7 79,152 0.7 1.6
13 [P] FACEBOOK.COM 465 786 4.1 38,919 0.7 1.7
14 [P] Fox Interactive Media 420 866 3.6 48,356 0.6 2.1
15 [P] Lycos Sites 408 662 8.1 18,365 0.6 1.6
16 [P] Sohu.com Inc. 225 453 4.5 13,696 0.3 2.0
17 [P] CRAIGSLIST.ORG 224 1,059 6.2 12,582 0.3 4.7
18 [P] Wikipedia Sites 215 253 2.3 47,646 0.3 1.2
19 [P] TENCENT Inc. 213 348 5.0 18,933 0.3 1.6
20 [P] FRIENDSTER.COM 173 273 5.5 13,454 0.3 1.6
Source: comScore Networks; Worldwide data for December 2007; qSearch Key Measures Report
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16. CGM Changes Minds of Online
Travel Buyers
51 percent of respondents used CGM (Consumer
Generated Media) to help narrow a choice
23 percent employed consumer-created information to
confirm a decision
15 percent used it to pick their top choice.
21.2 percent of travel purchaser surveyed said consumer
review sites influenced their choices, while 11.3 percent
noted online advice from consumers did so.
Advice from family and friends and corporate Web sites,
however, had more impact. Friends and relatives
influenced 38.3 percent of participants, and around one-
third said company sites had an effect.
Source: The ClickZ Network, Dec 14, 2006
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